Bitcoin remains locked inside a bear flag formation that traditionally signals a continuation of downside momentum toward sub-$50,000 levels, roughly 30% below current prices. However, aggressive buying by Strategy, led by chairman Michael Saylor, is creating strong counterpressure against bearish expectations.
Since March 2, Strategy has accumulated approximately 46,233 BTC, significantly outpacing the roughly 16,200 BTC mined during the same period. This means the firm absorbed nearly three times the newly created supply, tightening available liquidity and helping Bitcoin avoid a breakdown that had been anticipated for weeks.
Much of this demand has been funded through Strategy’s STRC variable-rate preferred stock. When STRC traded near or above its $100 par value, the company increased share issuance to finance purchases. Last week alone, Strategy raised $102.6 million through STRC sales, contributing to a Bitcoin purchase exceeding $330 million. Following this activity, Bitcoin’s price climbed more than 6.65%.
Between March 9 and March 13, STRC sales generated about $776 million, enough to acquire over 11,000 BTC. During that period, Bitcoin gained more than 10.5%, even as the S&P 500 declined by 1.6%, highlighting divergence between crypto and traditional markets.
Bear Flag Failure Could Trigger Rally Toward $110,000
Bitcoin’s bearish outlook could be invalidated if price breaks above the upper boundary of the bear flag near the mid-$70,000 range. A confirmed breakout would shift market focus toward a measured upside target between $108,000 and $110,000.
If this level continues to hold as support, analysts suggest the probability of a long-term recovery scenario increases. Still, risk remains tied to demand strength and continued institutional accumulation, particularly if STRC trading weakens, which has previously coincided with 25% to 40% Bitcoin pullbacks driven by long-term holders and large investors.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.